US EditionDespite Tensions, India-Pakistan Trade Thrives Through Third Countries
- In May 2025, despite formal trade suspension, Pakistan imported $15 million worth of goods from India during ongoing closed borders and brief conflict.
- Imports continued despite Pakistan's decision to stop official trade with India following the terror attack in Pahalgam on April 22 and India's subsequent closure of the Attari land transit point.
- Official data shows exports from Pakistan to India were negligible, amounting to just $1,000 in May and $0.5 million in July-May FY25, reflecting highly one-sided trade.
- A research organization in India estimated that unofficial exports from India to Pakistan amount to around $10 billion each year, primarily channeled through hubs like Dubai, Colombo, and Singapore, partly driven by Pakistan’s comparatively high production costs.
- These figures and analyses suggest economic interdependence persists through informal channels despite political tensions and border closures between the two countries since 2019.
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India–Pakistan trade persisted in May despite tensions and border closure after Pahalgam attack
Formal trade ties between the two neighbours have remained strained since 2019. Following the April 22 Pahalgam terror attack, which killed 26 people, India took swift action, including the suspension of operations at the Attari land transit post — a key route for limited cross-border trade.
·Mumbai, India
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Despite Tensions, India-Pakistan Trade Thrives Through Third Countries
Despite a brief military conflict and border closures, trade between Pakistan and India continued through third countries, reaching a three-year high in imports. Exports to India remained negligible, revealing a one-sided trade relationship. Unofficial trade, primarily through Dubai, Colombo, and Singapore, is reportedly much larger.
·India
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Leaning Left2Leaning Right3Center1Last UpdatedBias Distribution50% Right
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- 50% of the sources lean Right
50% Right
L 33%
C 17%
R 50%
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